1 Chapter 3 Branding Strategy. 2 The Brand “The sum of all characteristics, tangible and...

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Chapter 3Branding Strategy

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The Brand

“The sum of all characteristics, tangible and intangible, that make the offer unique.”

Brand Name Starbucks

Word Mark

Brand Logo

Trademark ™ Legally Protected Marks

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Views on Brands

“A name, logo, or symbol that evokes in customers a perception of added value for which they will pay a premium price.”

John Torella, J.C. Winters Group, Toronto

“A product with a personality.”

Chris Staples, Rethink, Vancouver

Marketing communications in any form has an impact on customers’ perceptions.

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Benefits of Branding

For customers a brand offers:

1. A desired level of quality consistently

2. Psychological rewards from ownership

3. A means of distinguishing one brand from another

The brand image helps create loyalty.

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Benefits of Branding

For the company branding offers:

1. A means of communicating features and benefits

2. An opportunity to create and sustain an image

3. Customer satisfaction and repeat purchase opportunity

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Brand Loyalty

“The degree of consumer attachment to a brand.”

RecognitionRecognition

PreferencePreference

InsistenceInsistence

Awareness of name, benefit and package

Is useful, consumer will buy if available

Will search for; must have

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Brand Equity

The value of a brand in its holistic sense to its owners as a corporate asset. Brands have value.

Equity is derived from:

• Effective marketing strategies

• A brand’s status in the marketplace

• A brand’s position among customers

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The Top 10 Global Brands

1. Coca-Cola $70.42. Microsoft $65.13. IBM $51.84. GE $42.35. Intel $31.16. Nokia $29.97. Disney $28.08. McDonald’s $24.79. Marlboro $22.210. Mercedes $21.4

1. Coca-Cola $70.42. Microsoft $65.13. IBM $51.84. GE $42.35. Intel $31.16. Nokia $29.97. Disney $28.08. McDonald’s $24.79. Marlboro $22.210. Mercedes $21.4

The highest ranking Canadian brand is Bombardier but it is not in the top 100 yet.

Source: Globe and Mail, July 25, 2003.

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Brand Building

1. Identify Brand Values and Positioning Strategy1. Identify Brand Values and Positioning Strategy

2. Plan and Implement the Marketing Program2. Plan and Implement the Marketing Program

3. Measure and Evaluate Brand Performance3. Measure and Evaluate Brand Performance

4. Build Brand Loyalty and Brand Equity4. Build Brand Loyalty and Brand Equity

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Brand Positioning

“The selling concept that motivates purchase, or the image that marketers desire a brand to have in the minds of consumers.”

A good positioning strategy clearly differentiates a brand from all competing brands.

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Core Values

The primary attributes and benefits a brand delivers to the customer

Nike: Inspiration and innovation

Tide Laundry Detergent: Removes really tough stains from any material

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Positioning Strategy Statements

A good positioning strategy statement is:

• Clear• Concise• Uncomplicated• Addresses target needs• Communicates a key benefit

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Sample Positioning Statement

“To reinforce our position in the credit card market, and to establish it as the preferred choice for all future purchases.”

VISAAll you need

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Positioning

• Are distinctive and different from competition

• Have sharp focus and personalities

• Are not commodities

Well positioned brands:

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Well-Positioned Brands

• Communicate a distinctive benefit that differentiates them

• Focus and sacrifice. They don’t try to be all things to all people

• Develop expertise that serves as a magnet to attract others

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Positioning Definition

Consumers ultimately position a brand based on their perceptions and experiences with the brand.

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What is my positioning?

Volvo safety

Cover Girl clean, fresh, natural beauty

Federal Express reliable overnight delivery

Dove Beauty Bar gentle clean

Michelin Tires safety

State Farm Insurance reliable friend when in need

Carlsberg Beer beer for grown ups

Mojo radio talk radio for guys

Vector cereal great tasting fuel, for serious athletes

Pork the other white meat

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What is my positioning?

Volvo safety

Cover Girl clean, fresh, natural beauty

Federal Express reliable overnight delivery

Dove Beauty Bar gentle clean

Michelin Tires safety

State Farm Insurance reliable friend when in need

Carlsberg Beer beer for grown ups

Mojo radio talk radio for guys

Vector cereal great tasting fuel, for serious athletes

Pork the other white meat

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The Importance of Positioning

MarketAnalysis

MarketAnalysis

Target MarketAnalysis

Target MarketAnalysis

Competitor Analysis

Competitor Analysis

Positioning Strategy

Positioning Strategy

ProductStrategyProductStrategy

PriceStrategy

PriceStrategy

IMCStrategy

IMCStrategy

DistributionStrategy

DistributionStrategy

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Positioning Strategies

• Product Differentiation

• Brand Leadership

• Head-On

• Innovation

• Price (Value)

• Channel Advantage

• Image (Lifestyle)

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Develop a positioning strategy statement for:

Wal-MartLa SenzaAppleGatorade

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Branding and IMC

There are two key decision areas:

1. Determining the appropriate brand elements to focus on (names, packaging, symbols and characters).

2. Devising an effective marketing communications strategy to communicate the brand’s values and positioning strategy.

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Packaging and Brand Image

A good package design helps build a brand.

1. The “look” of a package must be instilled in the customer’s mind.

2. A package can differentiate one brand from another.

3. Familiarity with a package creates trust with customers.

4. New packages create new products (product forms).

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Packaging is More Than a Container

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Roles of Packaging

A good package serves three primary functions:

1. Protect the product

2. Market the product

3. Provide convenience to distributors and consumers